2025 Q4 Financial Results - Consolidated Financial Report (IFRS)

FORMOSA CHEMICALS & FIBRE

CORPORATION AND SUBSIDIARIES

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

Items Pages

Index

Independent Auditors' Review Report 1-7

Consolidated Balance Sheets 8-9

Consolidated Statements of Comprehensive Income 10

Consolidated Statements of Changes in Equity 11-12

Consolidated Statements of Cash Flows 13-14

Notes to Consolidated Financial Statements 15-106

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

PWCR25000441

To the Board of Directors and Shareholders of Formosa Chemicals & Fibre Corporation

We have audited the accompanying consolidated balance sheets of Formosa Chemicals & Fibre Corporation and subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group's 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group's 2025 consolidated financial statements are stated as follows:

Description

Refer to Note 4(11) for accounting policy on accounts receivable, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to impairment of accounts receivable, and Note 6(5) for details of loss allowance for accounts receivable. As of December 31, 2025, the Group's accounts receivable amounted to NT$19,564,761 thousand, net of loss allowance in the amount of NT$79,651 thousand.

The Group assesses expected credit impairment loss on accounts receivable based on historical experience, forward-looking information and known reason or existing objective evidences. For those accounts which are considered uncollectible, the Company recognises impairment with a credit to accounts receivable. Management evaluates the reasonableness of estimated provision periodically. As the estimation of loss allowance is subject to management's judgement and business indicators, the amount of provision is based on the collectability of accounts receivable, and considering that accounts receivable and loss allowance are material to the financial statements, we considered the loss allowance for accounts receivable a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

1. Obtained the overdue aging report used when management assessed the expected credit impairment loss, assessed whether the logic of data source was consistently applied, and tested its accuracy with proper documents.

2. Assessed the reasonableness of estimates used by management in calculating expected credit impairment loss and obtained supporting documents, including forward-looking information,

   disputed accounts, overdue accounts, subsequent collection, and other indicators that would show that the customer would be unable to repay on schedule.

3. Performed subsequent collection test in order to verify the adequacy of loss allowance provided for accounts receivable.

Description

Refer to Note 4(14) for accounting policy on inventory valuation, Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(6) for detailed information on allowance for inventory valuation losses. As of December 31, 2025, the inventory and allowance for inventory valuation losses were NT$34,950,547 thousand and NT$1,781,011 thousand, respectively.

The Group is primarily engaged in the manufacture and sales of petrochemical plastic products, fibers weaving and cords. As the price of petrochemical plastic products is subject to the fluctuations in international crude oil price, and the textile market is competitive, there is a higher risk for inventory valuation loss. The Group recognises inventories at the lower of cost and net realisable value, and the net realisable value is calculated based on average price less selling expenses. Since the net realizable value used in inventory valuation involves subjective judgement and high uncertainty in estimation, and the allowance for inventory valuation losses is material to the financial statements, we considered the allowance for inventory valuation losses as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

1. Assessed the reasonableness of policies and procedures on allowance for inventory valuation loss, including the reasonableness of classification of inventory in determining the net realisable value.

2. Obtained an understanding of the Group's warehousing control procedures. Reviewed the annual physical inventory count plan and participated in the annual inventory count in order to assess the effectiveness of the classification of inventory and internal control over inventory.

3. Checked the method in calculating the net realisable value of inventory and assessed the reasonableness of allowance for valuation loss.

We did not audit the financial statements of certain subsidiaries and investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries and associates, is based solely on the reports of the other auditors. Total assets of these subsidiaries and the balances of these investments accounted for under the equity method amounted to NT$130,397,924 thousand and NT$117,558,281 thousand, both constituting 24% of the consolidated total assets as at December 31, 2025 and 2024, respectively, and operating revenue amounted to NT$5,674,647 thousand and NT$5,930,607 thousand, both constituting 2% of the consolidated total operating revenue for the years then ended, respectively. The comprehensive income (loss) recognised from these associates and joint ventures accounted for under the equity method amounted to NT$15,477,615 thousand and (NT$3,048,887) thousand, constituting 19% and 4% of the consolidated total comprehensive income (loss) for the years ended December 31, 2025 and 2024, respectively.

We have audited and expressed an unmodified opinion on the parent company only financial statements of Formosa Chemicals & Fibre Corporation as at and for the years ended December 31, 2025 and 2024.

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the Group's financial reporting process.

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements,

   whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures

   that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

   estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements,

   including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Juanlu, Man-Yu Hsu, Sheng-Chung

For and on Behalf of PricewaterhouseCoopers, Taiwan March 10, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Assets Notes AMOUNT % AMOUNT %

(Continued)

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Liabilities and Equity Notes AMOUNT % AMOUNT %

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for (loss) earnings per share amount)

Year ended December 31

2025 2024

Items Notes AMOUNT % AMOUNT %

Basic (loss) earnings per share (in dollars) 6(27) Before Tax After Tax Before Tax After Tax 9710 (Loss) profit for the year from continuing operations ( $ 0.86 )( $ 0.99 ) $ 0.16 $ 0.19

9720 Non-controlling interest 0.08 0.00 0.06 0.13

(Loss) profit attributable to common shareholders

( $ 0.94 )( $ 0.99 ) $ 0.10 $ 0.06

of the parent

Assuming shares held by subsidiary are not deemed as treasury stock:

9710 (Loss) profit for the year from continuing operations ( $ 0.85 )( $ 0.98 ) $ 0.16 $ 0.19

Non-controlling interest 0.09 0.01 0.07 0.13

9750 (Loss) profit attributable to common shareholders

( $ 0.94 )( $ 0.99 ) $ 0.09 $ 0.06

of the parent

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Retained Earnings Other Equity Interest

Unrealised (gains) losses from financial assets

Total capital surplus, additional

Unappropriated

Financial

statements translation differences of

measured at fair

value through other comprehensive

Gains (losses) on hedging

Revaluation

Non-controlling

Notes Common stock paid-in capital Legal reserve Special reserve retained earnings foreign operations income instruments surplus Treasury stocks Total interest Total equity

Legal reserve Special reserve Cash dividends

Changes in the net interest of associates recognised under the equity method

Expired cash dividends reclassified to capital surplus

6(18)

6(16)

- - -

- - -

( 7,326,483 ) - ( 7,326,483 )

( 695,062 ) - ( 695,062 )

20,695 - 20,695

Dividends paid to subsidiaries to adjust capital 6(16) surplus

5,689 - 5,689

subsidiaries

Decrease in non-controlling interest-acquisition 6(16)(28) of ownership interests in subsidiaries

Balance at December 31, 2024

(Continued)

- ( 912,406 ) ( 912,406 )

( 138,660 ) ( 187,981 ) ( 326,641 )

$ 272,548,270 $ 32,937,544 $ 305,485,814

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Retained Earnings Other Equity Interest

Unrealised (gains) losses from financial assets

Total capital surplus, additional

Unappropriated

Financial

statements translation differences of

measured at fair

value through other comprehensive

Gains (losses) on hedging

Revaluation

Non-controlling

Notes Common stock paid-in capital Legal reserve Special reserve retained earnings foreign operations income instruments surplus Treasury stocks Total interest Total equity

For the year ended December 31, 2025

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

Notes 2025 2024

CASH FLOWS FROM INVESTING ACTIVITIES

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

1. History and Organisation

   Formosa Chemicals & Fibre Corporation (the ''Company") was founded on March 5, 1965. The Company and its subsidiaries (together referred herein as the "Group") now has eight business divisions, namely First Chemical Division, Petrochemicals Division, Third Chemical Division, Plastics Division, Textile Division, First Fiber Division and its subsidiaries, Second Fiber Division, and Engineering & Construction Division. The Group's major businesses are production and sales of petrochemical products, including PTA, PS, AN, Butadiene, SM polymer, SM, benzene, toluene, p-xylene (PX) and o-xylene (OX), as well as nylon fiber, and rayon staple fiber. The Group is also engaged in spinning, weaving, dyeing and finishing.

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation These consolidated financial statements were authorised for issuance by the Board of Directors on March 10, 2026.

3. Application of New Standards, Amendments and Interpretations

   1. Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS ®") Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission ("FSC")

      New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:

      New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
      Amendments to IAS 21, 'Lack of exchangeability'	January 1, 2025

      The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

   2. Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

      New standards, interpretations and amendments endorsed by the FSC and became effective from 2026 are as follows:

      New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
      Specific provisions of Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments'	January 1, 2026
      Amendments to IFRS 9 and IFRS 7, 'Contracts referencing nature- dependent electricity'	January 1, 2026
      IFRS 17, 'Insurance contracts'	January 1, 2023
      Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
      Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 - comparative information'	January 1, 2023
      Annual Improvements to IFRS Accounting Standards-Volume 11	January 1, 2026

      Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

      Specific provisions of Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments'

      1. Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion, covering contractual terms that can change cash flows based on contingent events (for example, interest rates linked to ESG targets), non-recourse features and contractually-linked instruments.

      2. Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets), including a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows that could result from those contractual terms and the gross carrying amount of financial assets and amortised cost of financial liabilities subject to these contractual terms.

      3. Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception relating to the derecognition of a financial liability (or part of a financial liability) settled through an electronic cash transfer system. Applying the exception, an entity is permitted to derecognise a financial liability at an earlier date if, and only if, the entity has initiated a payment instruction and specific conditions are met.

         The conditions for the exception are that the entity making the payment does not have:

         1. the practical ability to withdraw, stop or cancel the payment instruction;

         2. the practical ability to access the cash used for settlement; and (c)significant settlement risk.

      4. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

   3. IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

      New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

      New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
      Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets between an investor and its associate or joint venture'	To be determined by International Accounting Standards Board
      IFRS 18, 'Presentation and disclosure in financial statements'	January 1, 2027 (Note)
      IFRS 19, 'Subsidiaries without public accountability: disclosures'	January 1, 2027
      Amendments to IAS 21, 'Translation to a Hyperinflationary Presentation Currency'	January 1, 2027

      Note：The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

      Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

      1. IFRS 18, 'Presentation and disclosure in financial statements'

         IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

      2. Amendments to IAS 21, 'Translation to a Hyperinflationary Presentation Currency'

         The amendments require all amounts (including comparatives) to be translated from a functional currency that is the currency of a non-hyperinflationary economy to a presentation currency that is the currency of a hyperinflationary economy using the closing rate at the date of the most recent statement of financial position. The amendments also include an exception for entities with a functional and presentation currency that is the currency of a hyperinflationary economy to not re-translate comparatives of foreign operation(s) with the functional currency of a non-hyperinflationary economy. The amendments also require additional disclosures including the

         applied translation method and summarised financial information about the foreign operation(s) to which the translation method is applied.

4. Summary of Material Accounting Policies

   The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

   1. Compliance statement

      The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs").

   2. Basis of preparation

      1. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

         1. Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

         2. Financial assets at fair value through other comprehensive income.

         3. Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

      2. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

   3. Basis of consolidation

      1. Basis for preparation of consolidated financial statements:

         1. All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

         2. Inter -company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

         3. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-

            controlling interests having a deficit balance.

         4. Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

         5. When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

      2. Subsidiaries included in the consolidated financial statements:

         Ownership (%)

         Name of investor

         Name of subsidiary

         Main business activities

         December 31,

         2025

         December 31,

         2024 Description

         The Company Formosa FCFC Carpet Spinning, dyeing, 100.00 100.00 The Company holds

         Corp.

         printing, finishing and manufacturing synthetic fibre, rug and carpet

         more than 50% of voting rights.

         The Company Formosa Renewable

         Energy Corp.

         Renewable energy technical services

         100.00 100.00 The Company holds more than 50% of voting rights. (Note 2)

         The Company FCFC Investment

         Corp. (Cayman)

         Investing 100.00 100.00 The Company holds more than 50% of voting rights.

         The Company Formosa Green Power

         Corp.

         Renewable-energy-based electricity retailing

         100.00 100.00 The Company holds more than 50% of voting rights.

         Ownership (%)

         Name of investor

         Name of subsidiary

         Main business activities

         December 31,

         2025

         December 31,

         2024 Description

         The Company Formosa Biomedical

         Technology Corp.

         Manufacturing and sales of cleaner and cosmetics

         88.59 88.59 The Company holds more than 50% of voting rights.

         The Company Formosa Idemitsu

         Petrochemical Corp.

         Wholesale and retail of petrochemical and plastic raw materials

         50.00 50.00 The Company has substantial control and thus regards Formosa Idemitsu Petrochemical Corp. as a subsidiary.

         The Company Formosa INEOS

         Chemicals Corp.

         Chemistry, international trade of petrochemistry

         50.00 50.00 The Company has substantial control and thus regards Formosa INEOS Chemicals Corp. as a subsidiary.

         The Company Chia-Nan Enterprise Corp.

         Hydropower 51.00 51.00 The Company holds more than 50% of voting rights.

         The Company Formosa Industries

         Corp.

         Production and marketing of textile, polyester staple fibre, cotton, hydropower

         42.50 42.50 The Company has substantial control and thus regards Formosa Industries Corp. as a subsidiary.

         The Company Formosa Taffeta Co.,

         Ltd.

         Production and marketing of Polyamine fabric, Polyester fabric, cotton fabric, blended fabric and tire cord fabric

         37.40 37.40 The Company has substantial control and thus regards Formosa Taffeta Corp. as a subsidiary.

         FCFC Investment Corp. (Cayman)

         Formosa Power (Ningbo) Co., Ltd.

         Cogeneration power generation business

         100.00 100.00 The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Cayman).

         Ownership (%)

         Name of investor

         Name of subsidiary

         Main business activities

         December 31,

         2025

         December 31,

         2024 Description

         FCFC Investment Formosa Chemicals & Investing 100.00 100.00 The company holds

         Corp. (Cayman)

         Fibre (Hong Kong) Co., Ltd.

         more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Cayman).

         Formosa Chemicals Formosa Chemicals

         Producing and

         100.00 100.00 The company holds

         & Fibre (Hong Kong) Co., Ltd.

         Industries (Ningbo) Co., Ltd.

         marketing of PTA、 PS、ABS、Phenol

         more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Hong Kong).

         Formosa Biomedical Technology Corp.

         Hong Jing Resources Corp.

         Removal and disposal of waste

         90.59 90.61 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp. (Notes 1)

         Formosa Biomedical Technology Corp.

         Formosa Biomedical Technology (SAMOA) Co., Ltd.

         Investment 100.00 100.00 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.

         Formosa Biomedical Technology Corp.

         Formosa Waters Technology Co., Ltd.

         Manufacturing industrial catalyst and wholesale of other chemical products

         57.00 57.00 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.

         Ownership (%)

         Name of investor

         Name of subsidiary

         Main business activities

         December 31,

         2025

         December 31,

         2024 Description

         Formosa Biomedical Technology Corp.

         Formosa Bio & Energy Corp. (Japan)

         Manufacturing and sale of battery energy storage systems and related products

         57.50 57.45 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.

         Formosa Biomedical Technology Corp.

         Ivy Life Sciences Co., Ltd.

         Research and development and clinical application of cell therapy technologies

         51.31 51.00 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp. (Notes 4)

         Formosa Biomedical Technology Corp.

         Formosa Eco Life Technology Co., Ltd.

         Sales of cleaning supplies

         70.00 70.00 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.

         Formosa Biomedical Technology Corp.

         Formosa Biomedical Material Technology Corp.

         Immunocyte capture and separation technology applications

         76.92 52.63 The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp. (Notes 3)

         Ownership (%)

         Name of investor

         Name of subsidiary

         Main business activities

         December 31,

         2025

         December 31,

         2024 Description

         Formosa Biomedical Technology (SAMOA) Co.,

         Ltd.

         Formosa Biomedical Trading (Shanghai) Co., Ltd.

         Importing, exporting and wholesale of heatlhy food

         100.00 100.00 Formosa Biochemical Technology holds more than 50% of voting rights through a 100% owned company- Formosa Biomedical Technology (SAMOA) Co., Ltd.

         Formosa Taffeta Co., Ltd.

         Formosa Taffeta (Vietnam) Co., Ltd.

         Production, processing, sales of yarn spinning, weaving, dyeing and finishing, carpets, curtains and cleaning supplies

         100.00 100.00 Formosa Taffeta Co., Ltd. holds more than 50% of voting rights.

         Formosa Taffeta

         Formosa Development Handling urban land

         100.00 100.00 Formosa Taffeta Co.,

         Co., Ltd.

         Co., Ltd.

         consolidation, housing and building development and rental, new county and community construction and investment, and specific area development

         Ltd. holds more than 50% of voting rights.

         Formosa Taffeta

         Formosa Taffeta

         Sales of Nylon and

         100.00 100.00 Formosa Taffeta Co.,

         Co., Ltd.

         (Hong Kong) Co., Ltd. Polyamine fabric

         Ltd. holds more than 50% of voting rights.

         Formosa Taffeta Co., Ltd.

         Formosa Taffeta (Dong Nai) Co., Ltd.

         Manufacturing of nylon and polyester filament products

         100.00 100.00 Formosa Taffeta Co., Ltd. holds more than 50% of voting rights.

         Ownership (%)

         Name of investor

         Name of subsidiary

         Main business activities

         December 31,

         2025

         December 31,

         2024 Description

         Formosa Taffeta (Hong Kong) Co., Ltd.

         Formosa Taffeta (Changshu) Co., Ltd.

         Manufacturing and processing fabric of nylon filament knitted cloth, weaving and dyeing as well as post processing of knitted fabric

         100.00 100.00 Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company -Formosa Taffeta (Hong Kong) Co., Ltd.

         Formosa Taffeta

         Formosa Taffeta

         Manufacturing of

         100.00 100.00 Formosa Taffeta Co.,

         (Hong Kong) Co., Ltd.

         (Zhong Shan) Co, Ltd. nylon and polyester

         filament greige cloth, coloured cloth, printed cloth and textured processing yarn products

         Ltd. holds more than 50% of voting rights through a 100% owned company -Formosa Taffeta (Hong Kong) Co., Ltd.

         Formosa Development Co., Ltd.

         Public More Internation Co., Ltd.

         Employment services and temporary worker services

         100.00 100.00 Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company -Formosa Development Co., Ltd.

         Note 1: On March 14, 2024, the Board of Directors of the Group's subsidiary, Formosa Biomedical Technology Corp., resolved to acquire 21.21% equity interest in Hong Jing Resources Corp. for a cash consideration of $326,641. The shareholding ratio increased from 71.00% to 92.21%. On September 19, 2024, the subsidiary sold 1.60% equity interest in Hong Jing Resources Corp. at a price of $40 per share to employees. The shareholding ratio decreased from 92.21% to 90.61%. On July 1, 2025, the subsidiary sold 0.02% equity interest in Hong Jing Resources Corp. at a price of $40 per share to employees. Accordingly, the shareholding ratio decreased from 90.61% to 90.59%.

         Note 2: On May 9, 2024, the Company was approved by the competent authority to establish Formosa Renewable Energy Corporation with an investment amount of $50,000, and the shareholding ratio was 100%. The entity has been undergoing liquidation since September 1, 2025. As of December 31, 2025, the liquidation has not yet been completed.

         Note 3: On November 11, 2024, the Group's subsidiary, Formosa Biomedical Technology Corp., invested in the establishment of Formosa Biomedical Material Technology Corporation with an investment amount of $50,000, and the shareholding ratio was 100%. Additionally,

         on November 25, 2024, the board of directors of Formosa Biomedical Material Technology Corporation resolved to increase capital through intangible assets by $45,000. The shareholding ratio decreased from 100% to 52.63%. On February 20, 2025, Formosa Biomedical Material Technology Corporation increased working capital amounting to

         $100,000. The Board of Directors of the Group resolved to invest $100,000, and the shareholding ratio increased from 52.63% to 76.92%.

         Note 4: On March 28, 2025, the Group's subsidiary, Formosa Biomedical Technology Corp., acquired equity interest in Ivy Life Sciences Co., Ltd. for a cash consideration of $3,754. The shareholding ratio increased from 51.00% to 51.31%.

      3. Subsidiaries not included in the consolidated financial statements: None

      4. Adjustments for subsidiaries with different balance sheet dates: None

      5. Significant restrictions: None

      6. Subsidiaries that have non-controlling interests that are material to the Group:

         As of December 31, 2025 and 2024, the non-controlling interest amounted to $35,235,374 and

         $32,937,544, respectively. The information on non-controlling interest and respective subsidiary is as follows:

         Non-controlling interest

         		December 31, 2025		December 31, 2024
         Name of	Principal place	Ownership		Ownership
         subsidiary	of business	Amount (%)		Amount (%)
         Formosa Taffeta
         Co., Ltd.	Taiwan	$ 26,405,993	62.60	$ 23,000,840	62.60

         Summarised financial information of the subsidiary: Balance sheets

         Formosa Taffeta Co., Ltd.

         	December 31, 2025	December 31, 2024
         Current assets	$ 14,605,708	$ 15,290,355
         Non-current assets	42,532,655	37,071,744
         Current liabilities	( 5,330,155)	( 5,964,402)
         Non-current liabilities	( 9,469,887)	( 9,487,180)
         Total net assets	$ 42,338,321	$ 36,910,517

         Statements of comprehensive income

         Formosa Taffeta Co., Ltd.

         		Year ended		Year ended
         		December 31, 2025		December 31, 2024
         Revenue		$ 27,543,789		$ 28,715,705
         Profit before income tax		1,061,823		1,653,567
         Income tax expense	(	196,573)	(	163,382)
         Profit for the year		865,250		1,490,185
         Other comprehensive income (loss), net of tax		5,908,123	(	18,106,450)
         Total comprehensive income (loss) for the year		$	6,773,373	($	16,616,265)
         Statements of cash flows

         Formosa Taffeta Co., Ltd.

         Year ended Year ended December 31, 2025 December 31, 2024

         Net cash provided by operating $ activities

         (	817,837)	(	874,297)
         (	1,866,241) (		3,247,575)
         (	170,687)		97,014
         (	297,622) (		716,479)

         Net cash used in investing activities Net cash used in financing activities Effect of exchange rates on

         cash and cash equivalents Decrease in cash and

         cash equivalents

         	3,524,678			4,241,157
         $	3,227,056		$	3,524,678

         Cash and cash equivalents, beginning of year

         Cash and cash equivalents, end of year

   4. Foreign currency translation

      2,557,143 $

      3,308,379

      Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan dollars, which is the Company's functional and the Group's presentation currency.

      1. Foreign currency transactions and balances

         1. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

         2. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

         3. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

         4. All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.

      2. Translation of foreign operations

         1. The operating results and financial position of all the group entities, associates and jointly controlled entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

            1. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

            2. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

            3. All resulting exchange differences are recognised in other comprehensive income.

         2. When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

   5. Classification of current and non-current items

      1. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

         1. Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

         2. Assets that are held primarily for the purpose of trading;

         3. Assets that are expected to be realised within twelve months after the reporting period;

         4. Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

      2. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

         1. Liabilities that are expected to be settled in the normal operating cycle;

         2. Liabilities that are held primarily for the purpose of trading;

         3. Liabilities that are due to be settled within twelve months after the reporting period;

         4. It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

   6. Cash equivalents

      Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

   7. Financial assets at fair value through profit or loss

      1. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income. Financial assets at amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.

      2. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

      3. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

      4. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

   8. Financial assets at fair value through other comprehensive income

      1. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

         1. The objective of the Group's business model is achieved both by collecting contractual cash flows and selling financial assets; and

         2. The assets' contractual cash flows represent solely payments of principal and interest.

      2. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

      3. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

         1. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will

            flow to the Group and the amount of the dividend can be measured reliably.

         2. Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

   9. Financial assets at amortised cost

      1. Financial assets at amortised cost are those that meet all of the following criteria:

         1. The objective of the Group's business model is achieved by collecting contractual cash flows.

         2. The assets' contractual cash flows represent solely payments of principal and interest.

      2. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

      3. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

      4. The Group's time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

   10. Accounts and notes receivable

       1. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

       2. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

   11. Impairment of financial assets

       For accounts receivable or contract assets that have a significant financing component, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

   12. Derecognition of financial assets

       The Group derecognises a financial asset when one of the following conditions is met:

       1. The contractual rights to receive the cash flows from the financial asset expire.

       2. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

       3. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has not retained control of the financial asset.

   13. Leasing arrangements(lessor)-operating leases

       Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

   14. Inventories

       Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

   15. Investments accounted for using equity method /associates

       1. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

       2. The Group's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

       3. When changes in an associate's equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group's ownership percentage of the associate, the Group recognises the Group's share of change in equity of the associate in 'capital surplus' in proportion to its ownership.

       4. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

       5. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for under the equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit

          or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

       6. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

       7. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

       8. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

       9. At the balance sheet date, the Group performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

   16. Property, plant and equipment

       1. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

       2. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

       3. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

       4. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic

          benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

          Land improvements 3 ~ 15 years

          Buildings 10 ~ 60 years

          Machinery and equipment 5 ~ 25 years

          Transportation equipment 3 ~ 15 years

          Other equipment 2 ~ 15 years

   17. Leasing arrangements (lessee)－right-of-use assets / lease liabilities

       1. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

       2. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of Fixed payments, less any lease incentives receivable; The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

       3. At the commencement date, the right-of-use asset is stated at cost comprising the amount of the initial measurement of lease liability; The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term.

          When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

       4. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.

   18. Intangible assets

       1. Computer software

          Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life.

       2. Goodwill

          Goodwill arises in a business combination accounted for by applying the acquisition method.

   19. Impairment of non-financial assets

       1. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

       2. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

       3. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

   20. Borrowings

       Borrowings comprise long-term and short-term bank borrowings and other long-term and short-term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

   21. Notes and accounts payable

       1. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

       2. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

   22. Financial liabilities at fair value through profit or loss

       1. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

       2. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

   23. Bonds payable

       Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to 'finance costs'.

   24. Derecognition of financial liabilities

       A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

   25. Non-hedging derivatives

       Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

   26. Provisions

       Under the Climate Change Response Act and its regulations in the ROC, carbon fees levied are not applicable under IFRIC 21, 'Levies' but are recognised and measured in accordance with IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets'. If the estimated annual emissions are probable to exceed the threshold for levying, liabilities in relation to emission fees are estimated and accrued based on the proportion of emissions already incurred to the estimated annual emissions in the interim financial statements.

   27. Employee benefits

       1. Short-term employee benefits

          Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

       2. Pensions

          1. Defined contribution plans

             For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

          2. Defined benefit plans

             1. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The

                rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

             2. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as other equity.

             3. Past service costs are recognised immediately in profit or loss.

       3. Employees', directors' and supervisors' remuneration

          Employees' remuneration and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

   28. Income tax

       1. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

       2. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

       3. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

       4. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.

       5. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

       6. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

   29. Share capital

       1. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

       2. Where the Company repurchases the Company's equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.

   30. Dividends

       1. Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities.

       2. For the shareholders' dividends that should be distributed in cash, the Company's Board of Directors would be adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and then reported to the shareholders. The provisions that must be resolved by the shareholders' meeting shall not apply.

   31. Revenue recognition Sales of goods

       1. The Group manufactures and sells a variety of petrochemical products, including the spinning, weaving, dyeing and finishing of rayon and nylon fiber. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products.

       2. The amount of sales revenue recognised is equal to the contract price net of volume discounts and sales discounts and allowances. Volume discounts and sales discounts and allowances are estimated based on historical information, and a refund liability is recognised for expected volume discounts and sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 30 to 120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

       3. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

   32. Business combinations

       1. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity's net assets in the event of liquidation at either fair value or the present ownership instruments' proportionate share in the recognised amounts of the acquiree's identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

       2. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

   33. Operating segments

       Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

   The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. The information is addressed below:

   1. Critical judgements in applying the Group's accounting policies None.

   2. Critical accounting estimates and assumptions

      1. Impairment assessment of accounts receivable

         In the process of assessing impairment of accounts receivable, the Group must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factors: customers' financial conditions, the Group's internal credit ratings, historical experience, etc. When sales are not expected to be collected, the Group recognises a specific allowance for doubtful receivables after the assessment. The assumptions and estimates of loss allowance provided for accounts receivable are based on concerning future events as that on the balance sheet date. Assumptions and estimates may differ from the actual results which may result in material adjustments.

      2. Evaluation of inventories

         As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value.

         As of December 31, 2025, the carrying amount of inventories was $33,169,536.

6. Details of Significant Accounts

   1. Cash and cash equivalents

Time deposits

Bonds repurchased and commercial paper

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. Loss allowance is measured using 12-month expected credit losses. For the years ended December 31, 2025 and 2024, the Group did not recognise any loss allowance.